Insiders Buying Shares of 4 Stocks Priced Under $10
07/08/2014 7:00 am EST
Even though there are a number of reasons for insider selling, there’s really only one for insider buying: the expectation the stock will go up. Here, the staff at Kapitall.com analyzes four currently low-priced stocks with insider buying.
Insider buying is on the rise in these four stocks under $10. Are employees right to bet on their own success?
Insider buying is a very carefully watched metric for anyone interested in buying small-cap stocks, defined as companies with a market cap of, at most, $2–3 billion.
On one hand, insider selling can happen for all kinds of reasons, many of which don't have much to do with the company in question. Sometimes, people just need to rustle up some extra cash.
Insider buying, on the other hand, is a much more telling metric, as there's really only one reason why you'd buy a whole bunch of your own company's stock: you expect it to go up.
But you also have to be very careful when using insider buying as a metric to analyze stocks. For instance, the size of the company can make a big difference—the longer the chain of command, the less any one executive will know about the company's other operations.
When the company is smaller there's a better chance the purchaser in question has more accurate information about the company's future prospects. So, with that in mind, we rounded up four small-cap stocks under 10 dollars with insider buying.
Do you think employees are right to bet on their own success? Use the list below to begin your analysis.
Click on the interactive chart to view data over time.
1. Cumulus Media, Inc. (CMLS): Engages in the acquisition, operation, and development of commercial radio stations in the United States. Market cap at $1.19B, most recent closing price at $6.62.
2. Lionbridge Technologies, Inc. (LIOX): Provides language, development, and testing services. Market cap at $430.95M, most recent closing price at $7.26.
3. Resolute Energy Corporation (REN): Engages in the acquisition, exploration, exploitation, and development of oil and gas properties primarily in onshore properties in the United States. Market cap at $688.6M, most recent closing price at $9.42.
4. SandRidge Energy, Inc. (SD): Operates as an independent natural gas and oil company in the United States. Market cap at $3.19B, most recent closing price at $6.59.
By the Staff of Kapitall.com